On 14/FEB/1994 at our initiative an informative conversation
was conducted with xxxxxxxxxxxxxxxx,
owner of the company xxxxxxxx,
from Kumanovo.

The conversation was conducted in his office located on "Xxxxxxxxxxx", street
regarding his five day stay in the Republic of Bulgaria during the month of
February of this year.

During the course of the conversation among other things xxxxxxxxx regarding his travel
and stay in the Republic of Bulgaria, said that he traveled with his spouse and
that he had the intention of testing the attitude of Bulgarian border
authorities toward him, after the expiration of the measure of a 5 year
prohibition to enter Bulgaria which was applied against him by the Bulgarian
border authorities, as well as visiting and renewing his friendly connection
with Bončo N. ["Unknown to us"], a private hospitality entrepreneur
from Samokov [city in Bulgaria] and Žoro N. ["Unknown to us"] owner
of a car repair shop, also from Samokov. During the course of his contacts and conversations
with Bončo and Žoro, as xxxxxx
said, was seriously warned from both of them independently from each other, to
be careful with whom he gets in contact and with whom he starts business
cooperation, because if they were not { illegible
illegible illegible illegible illegible} very difficult to deal with { illegible illegible} in the last two
years, but especially in the last couple of months they pointed out that the
crime rate in the Republic of Bulgaria rose to before unseen levels. Countless
mafia groups are roaming the country, and even persons who are servicemen of
the Ministry of Internal Affairs are involved with these groups, which represent
a particular problem to the efforts if discovering and the apprehension of the
same. He was also warned never to travel in the night hours, because in the
opposite, the worst could befall him.

Regarding the process of denationalization Bončo said that
it was already being finalized, with regards to the housing fund and other real
estate, but that they are having problems denationalizing [agricultural] land.
Lists are being made and surveys are being conducted, and land is being
returned [to its owners of the pre-Communist era], but the denationalization of
land is difficult because the majority of people do not want to go back to work
on the land, and that everybody is looking for earnings out of very little
effort. Because a large portion of the ethnic-Turkish population has moved to
Turkey, a labor deficit is being felt in Bulgaria, and there is nobody willing
to work the land [to work in agriculture].

Because of the circumstances in which the contacts with Bonča
and Žoro took place, xxxxxxx
said that no political conversations took place, due to what no
security-interesting information or findings were obtained.

OPERATIONAL COMMENTARY:

Xxxxxxxxx
has been used by us from time to time. The same has numerous friendly
connections in the Republic of Bulgaria through which he has the ability to
obtain security-interesting information and findings. The same, as an owner of
a trading company, has a basis for frequent travel to the Republic of Bulgaria
and is making contacts with persons who are owners of companies with which other
persons who are owners of companies from Kumanovo and the Republic (PT "Crni",
xxxxxx and others)
also make contacts, because of which the same [the Source], among other things,
will be engaged for the purpose of discovery and examination of the contacts
and connections of PT "Crni" and other owners of companies from this region
with security-interesting people from the Republic of Bulgaria.